Ultra Clean Holdings Inc (UCTT)

Return on total capital

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	86,700	63,700	41,600	29,400	28,600	72,900	101,000	81,200	112,100	123,300	139,300	178,800	171,600	143,800	129,900	130,300	113,800	80,400	58,100	36,600
Long-term debt	US$ in thousands	476,500	475,800	478,300	458,200	461,200	464,100	467,100	470,000	493,000	509,200	—	—	529,900	545,100	573,100	259,800	261,600	272,600	322,100	323,900
Total stockholders’ equity	US$ in thousands	873,600	857,900	852,300	830,900	838,900	838,000	849,800	870,700	887,900	856,700	845,600	879,600	848,900	800,000	767,500	557,600	532,600	500,100	470,500	445,900
Return on total capital		6.42%	4.78%	3.13%	2.28%	2.20%	5.60%	7.67%	6.06%	8.12%	9.03%	16.47%	20.33%	12.45%	10.69%	9.69%	15.94%	14.33%	10.41%	7.33%	4.75%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $86,700K ÷ ($476,500K + $873,600K)
= 6.42%

Ultra Clean Holdings Inc's return on total capital has shown fluctuations over the past few years. The trend indicates an overall increase from March 31, 2020, to June 30, 2022, with a significant peak at 20.33% on March 31, 2022. However, the return decreased in the following quarters, reaching its lowest point at 2.20% on December 31, 2023, before climbing slightly to 6.42% on December 31, 2024.

The company's return on total capital performance reflects shifts in profitability and efficiency in utilizing both debt and equity in generating returns for investors and lenders. It is crucial for Ultra Clean Holdings Inc to monitor and improve this metric to ensure optimal utilization of the capital invested in the business.